Various Accounting Multiple Choice
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1. The Equipment account's proper classification is:
a. Revenue
b. Liability
c. Expense
d. Asset
2. The Supplies account's proper classification is:
a. Asset
b. Revenue
c. Liability
d. Expense
3. The Cost of Goods Sold account's proper classification is:
a. Asset
b. Revenue
c. Liability
d. Expense
4. The Fees Earned account's proper classification is:
a. Asset
b. Liability
c. Owner's equity
d. Revenue
5. The Accounts Payable account's proper classification and normal account balance are:
a. Asset
b. Liability
c. Owner's equity
d. Revenue
6. The Inventory account's proper classification is:
a. Revenue
b. Expense
c. Liability
d. Asset
7. The Accounts Receivable account's proper classification is:
a. Asset
b. Liability
c. Owner's equity
d. Revenue
8. Altoona Plumbing acquired Office Supplies on account. Which of the following entries properly records this transaction?
a. Debit: Office Supplies; Credit: Cash
b. Debit: Cash; Credit: Office Supplies
c. Debit: Office Supplies; Credit: Accounts Payable
d. Debit: Accounts Payable; Credit: Office Supplies
9. Altoona Plumbing acquired Equipment by making a Cash down payment and issuing a note to finance the remaining balance. Which of the following entries properly records this transaction?
a. Debit: Equipment; Credit: Cash, Accounts Payable
b. Debit: Equipment; Credit: Cash, Notes Payable
c. Debit: Equipment; Credit: Cash
d. Debit: Equipment; Credit: Cash, Accounts Payable, Notes Payable
10. Altoona Plumbing made its monthly office rent payment. Which of the following entries properly records this transaction?
a. Debit: Cash; Credit: Rent Expense
b. Debit: Rent Expense; Credit: Cash
c. Debit: Rent Expense; Credit: Accounts Payable
d. Debit: Accounts Payable; Credit: Rent Expense
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Solution Summary
10 multiple choice accouting questions including ones about accounts' classifications and how to record various accounting transactions (bought supplies on account, etc.).
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1. d. Asset (Plant,, Property, and Equipment are assets)
2. a. Asset (Supplies are Assets)
3. d. Expense (When goods are sold, COGS expense is incurred)
4. d. Revenue (Fees Earned are ...
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